BofA sees lower EUR/USD through Q3 on Fed policy outlook

Bank of America expects EUR/USD to stay under pressure through the end of Q3, driven by stronger-than-expected U.S. economic data and a more hawkish Federal Reserve outlook. The bank also said elevated oil prices in the near term should support the U.S. dollar, adding to downside pressure on the euro. However, BofA sees the dollar weakening after Q3 as oil prices fall and Fed rate hikes become fully priced in. The note is a macro FX view rather than a trade call with a specific target, but it suggests near-term bearish momentum for EUR/USD and a later potential rebound in the pair if dollar support fades.